Merck to acquire WuXi Biologics Ireland vaccine facility for USD 500 million

Written by Ruchika Sharma Published On 2025-01-08T10:00:53+05:30 | Updated On 8 Jan 2025 10:00 AM IST

WuXi Biologics to sell Ireland vaccine facility to Merck for USD 500 million

China's WuXi Biologics has announced plans to sell its vaccine facility in Ireland to U.S. pharmaceutical giant Merck & Co. for approximately USD 500 million. The decision comes ahead of potential U.S. legislation that would restrict business for Chinese biotech companies.

The U.S. House of Representatives passed the Biosecure Act in September, which would ban federal contracts with targeted firms and their business partners.

The legislation, which explicitly names WuXi, must pass the U.S. Senate before it can be sent to the president to be signed into law, Reuters reported.

"They (WuXi) are looking to reduce their scope and perhaps preparing for reduction in contracts," BTIG analyst Justin Zelin said.

The Financial Times had reported in October that WuXi and WuXi AppTec are planning to sell some of their operations.

"Especially with the newly entering administration being increasingly hawkish against China specifically ... there is broad support for the act conceptually. But it will need to find a larger legislative vehicle to become law," Zelin added.

The bill is designed to keep Americans' personal health and genetic information from foreign adversaries and encourage U.S. pharmaceutical and biotech companies to reduce their reliance on China for drug ingredient manufacturing and early research.

WuXi AppTec had said in December its units had signed a deal with U.S.-based private equity firm Altaris LLC for the sale of the U.S. and UK-based operations of its cell and gene therapy unit.

Read also: Merck, Hansoh Pharma ink pact for oral small molecule GLP-1 receptor agonist

Medical Dialogues team had earlier reported that Merck had received approval from the UK's Medicines and Healthcare products Regulatory Agency for its therapy, sotatercept, to treat a rare lung condition. Sotatercept gained U.S. approval in March 2024 and is sold under the brand name Winrevair. It is also approved in European Union and 30 other markets.

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Source : with inputs

Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751